J.C. Penney plans to create a REIT with some of its properties, as part of bankruptcy

J.C. Penney Co. Inc.’s Chapter 11 bankruptcy restructuring proposal includes plans to create a real estate investment trust, court documents show. 

Court filings also show that it will establish a financially sustainable operating company called “New JCP.”

The stores in the REIT would be leased to “New JCP” pursuant to a market-rate master lease, and up to 35 percent of the REIT interests may be sold to a strategic third-party investor. The proceeds of the sale may either be used to provide…